Tourism is important to the Australian economy, underpinning a wide range of industries. These industries range from accommodation to hiring cars to air transport.

Tourism is not an 'industry' in the traditional sense. Industries are classified in accordance with the goods and services they produce, whereas tourism depends on the status of the customer (visitor). For example, consumption of a restaurant meal by a visitor is defined as 'tourism'. When the meal is consumed by a local resident, the consumption is not 'tourism'.

The Tourism Satellite Account (TSA) creates a broad picture of tourism, which allows it to be compared with conventional industries like agriculture, manufacturing and retail trade. In 2002-03 the TSA reported more than $73b worth of tourism goods and services were consumed and tourism gross value added was $26b.

The value of tourism

Gross value added (GVA) is the preferred national accounts measure of industry production as it excludes taxes and subsidies on products. Estimates of tourism GVA relate to the direct impact of tourism activity. This means only the value added where there is a direct economic or physical relationship between the visitor and the producer of a good or service is included. Tourism gross domestic product (GDP) equates to tourism GVA plus taxes paid less subsidies received on tourism related products (net taxes on tourism products).

In 2002-03 tourism GVA was $25,875m and tourism GDP was $31,985m which contributed 4.2% to total GDP. Since 1997-98 tourism GVA has increased $3,981m and tourism GDP increased $7,043m. As a share of total GDP tourism reached a peak of 4.6% in 2000-01 and fell to 4.2% in 2002-03 (table 21.1).

The industries which accounted for the largest shares of tourism GVA were air and water transport (14%); accommodation (11%); cafes, restaurants and takeaway food outlets (10%); and the other retail trade industry (8%).

21.1 TOURISM SHARE OF GROSS DOMESTIC PRODUCT

Units

1997-98

1998-99

1999-2000

2000-01

2001-02

2002-03

Tourism characteristic industries GVA(a)

Travel agency and tour operator services

$m

835

869

895

992

966

975

Taxi transport

$m

174

195

197

218

207

210

Air and water transport

$m

3,211

3,309

3,430

3,727

3,592

3,590

Motor vehicle hiring

$m

231

259

280

284

287

298

Accommodation

$m

2,400

2,551

2,644

2,775

2,855

2,917

Cafes, restaurants and food outlets

$m

2,209

2,362

2,454

2,501

2,601

2,689

Total GVA of tourism characteristic industries(a)

$m

9,059

9,546

9,901

10,498

10,509

10,679

GVA of tourism connected industries(b)

$m

10,268

10,795

11,139

11,572

11,748

12,100

GVA of all other industries(c)

$m

2,567

2,714

2,955

2,974

2,972

3,096

Tourism GVA

$m

21,894

23,054

23,994

25,044

25,229

25,875

Net taxes on tourism products

$m

3,048

3,213

3,321

5,817

5,637

6,110

Tourism GDP

$m

24,942

26,267

27,316

30,861

30,865

31,985

Tourism share of total GDP

%

4.4

4.4

4.4

4.6

4.3

4.2

(a) Tourism characteristic industries have at least 25% of their output consumed by visitors.(b) Tourism connected industries are those industries not classified as characteristic that have products which are consumed by visitors in volumes which are significant.(c) GVA of all other industries includes the share of GVA of all industries that provide outputs to tourism not included in characteristic or connected industries.

When compared with traditional industries (which are classified by the Australian Bureau of Statistics using Australian and New Zealand Standard Industrial Classification (ANZSIC)) the gross value added of the tourism industry ranks 12th out of the 17 ANZSIC industry divisions. In 2002-03 tourism gross value added ($25,875m in current prices) exceeded that of agriculture, forestry and fishing ($20,059m); communication services ($19,994m); personal and other services ($17,553m); electricity, gas and water supply ($16,906m); accommodation, cafes and restaurants ($15,158m); and cultural and recreational services ($13,201m).

International trade in tourism

Tourism makes an important contribution to Australia's export earnings. In 2002-03 international visitors consumed $16.7b worth of goods and services produced by the Australian economy (tourism exports). This represented 11% of the total exports of goods and services (table 21.2).

Tourism employment estimates include employment generated where visitors have a direct relationship with the producer of the good or service.

In 2002-03 tourism directly generated 540,700 jobs, a marginal increase on 2001-02 (533,700 jobs) (table 21.3). The tourism industry's share of total employment fell slightly in 2002-03 to 5.7%, following a consistent 5.9% share from 1997-98 to 2000-01.

Retail trade generated the most direct tourism employment (140,400 persons) in 2002-03. Retail trade, accommodation, and cafes and restaurants accounted for more than half of the employment generated by tourism (54%).

21.3 PEOPLE EMPLOYED IN TOURISM

Units

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

Tourism characteristic and connected industries(a)

'000

466.5

470.4

480.7

497.8

493.3

499.3

All other industries

'000

42.4

42.5

44.0

39.9

40.5

41.5

Total tourism industry

'000

508.8

512.9

524.7

537.7

533.7

540.7

Total employed persons

'000

8,574.6

8,638.4

8,886.6

9,074.3

9,207.4

9,441.4

Tourism share of total employment

%

5.9

5.9

5.9

5.9

5.8

5.7

(a) Tourism characteristic and connected industries are those industries that have products which are consumed by visitors in volumes which are significant.